The effects of human resources management on transitional companies in the globalisation system

Organisations in the new millennium are faced with significant challenges to compete in a globalised system that involves the integration of free markets. In order to successfully compete in the global market, organisations in transitional economies have to develop the organisational culture that espouses employee's contribution to the organisational effectiveness. Human resources management plays a key role in the development of organisational culture. This in turn has an affect on the employee's commitment to the company through the process of recruitment and selection, performance appraisal, reward systems, training and development. In companies where human resources management is in its infancy, the organisational culture affects the employee's commitment to the company primarily through the reward systems. In this paper we focus on identifying theoretical concepts, principles, and methods in human resources management (HRM) for transitional companies. We conclude that transitional companies need to focus on the development of an organisational culture based on core values of rewarding excellent performance and increasing the opportunities and challenges for their employees.